In a new bet on the widespread adoption of digital assets, Goldman Sachs and Barclays invested in Elwood Technologies. The cryptocurrency trading platform that British hedge fund billionaire Alan Howard founded.
Despite the recent drop in cryptocurrency markets, Elwood believes positively. He thinks that traditional financial institutions will continue their interest in investing in cryptocurrencies. These include hedge funds and banks.
Goldman Sachs and Barclays investment a validation of crypto’s longevity
According to the Financial Times, German banks Commerzbank, Galaxy Digital, and Dawn Capital joined the round. According to the article, the company’s value was roughly $500 million during the fundraising round.
Elwood Technologies CEO James Stickland said the funding was “another validation of the longevity of crypto,” despite recent price declines. The said funding included Goldman Sachs and Barclays.
Elwood’s investment round was already agreed to and in the works before the latest price collapse, which has seen the whole crypto market valuation decrease by nearly 15% since May 9, according to CoinMarketCap.
A commitment to cryptocurrencies
Goldman Sachs’ global head of digital assets Mathew McDermott commented on the deal, noting that it demonstrated the firm’s “continued commitment” to cryptocurrencies.
Goldman Sachs’ investment represents the bank’s foray into crypto assets. In early May, the investment bank was the first to offer a loan secured by Bitcoin (BTC) to cryptocurrency exchange Coinbase. Its interest has long been in the field, referring to digital assets and the Metaverse as “megatrends” in March.
Another instance of the Wall Street behemoth courting crypto startups involved a meeting between Goldman CEO David Solomon and FTX CEO Sam Bankman-Fried, which featured Solomon’s offer to assist FTX with future investment rounds and regulatory compliance.
Alan Howard, who was the primary investor before the Series A round, will retain a majority stake in Elwood Technologies. In September 2021, Howard co-founded the hedge fund Brevan Howard, which launched its crypto investment division BH Digital.